CASL Compliance Guide for SMS Marketing in Canada (2026)

Published: May 2026 | By Clear Bay Team

Canada's Anti-Spam Legislation (CASL) is one of the strictest anti-spam laws in the world. If you're sending commercial text messages to customers in Canada, you need to understand and follow CASL requirements. This guide covers everything Canadian businesses need to know.

What is CASL?

CASL (Canadian Anti-Spam Legislation) came into effect on July 1, 2014. It regulates all "commercial electronic messages" (CEMs), which includes:

• SMS and text messages
• Email marketing
• Social media direct messages
• Instant messages

The law requires businesses to obtain consent before sending commercial messages and to include specific information in every message.

Two Types of Consent Under CASL

1. Express Consent (Best for Marketing)

Express consent means the customer actively agreed to receive messages from you. This can be obtained:

• Through a sign-up form on your website
• Via text message opt-in ("Text JOIN to 12345")
• Through a checkbox on a paper form
• Verbally (but you must document it)

Express consent never expires unless the customer withdraws it, making it ideal for ongoing marketing.

2. Implied Consent (Limited Use)

Implied consent exists when:

• You have an existing business relationship (customer made a purchase in the last 2 years)
• You have a non-business relationship (donor, member, volunteer)
• The customer publicly published their contact information without stating "no marketing"

Implied consent expires after 2 years from the last transaction, or 6 months after an inquiry.

What Every SMS Must Include

Under CASL, every commercial text message must clearly include:

1. Your business identity: Full legal name or registered business name
2. Contact information: Phone number, email, or physical address valid for 60+ days
3. Unsubscribe mechanism: A clear way to opt out (e.g., "Reply STOP to unsubscribe")

Example CASL-Compliant SMS:

CASL Penalties

The consequences of non-compliance are severe:

• Up to $10 million per violation for businesses
• Up to $1 million per violation for individuals
• Personal liability for directors and officers
• Reputational damage and loss of customer trust

CASL Compliance Checklist

Common CASL Mistakes to Avoid

• Buying contact lists: Purchased lists rarely have proper consent
• Assuming consent: Just because someone is a customer doesn't mean they consented to SMS
• Making unsubscribe difficult: It must be free and easy (e.g., "Reply STOP")
• No record keeping: You must be able to prove consent if challenged

How Clear Bay Keeps You Compliant

Clear Bay's SMS platform is built with CASL compliance in mind. Our system:

• Automatically includes your business info in every message
• Handles opt-in and opt-out automatically
• Maintains consent records for your protection
• Ensures every campaign follows Canadian regulations